Spin-offs Case Study

The Motorola Split – Heralding a New Approach?

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Abstract:

Headquartered in Schaumburg, Illinois (US), Motorola Inc is a global leader in providing integrated communications and embedded electronic solutions. The company maintained its leadership position in areas such as:

1. Broadband
2. Embedded electronic products
3. Automotive communications
4. Wireless technologies

Motorola is known for its innovation in communication and for delivering next-generation communication solutions to consumers and businesses. In the 1990s, Motorola dominated the mobile handset industry globally with the highest market share. Later, Nokia overtook it, when Motorola delayed making the transition from analogue to digital phones and spent heavily on expensive, full-featured phones. Immediately after, the sales of Motorola both in the Asian and European markets slumped, Samsung also went ahead of Motorola and was ranked the second largest mobile phones manufacturer globally in the year 2007. With more competition from other handset manufacturers, the company witnessed a decrease in its market share and sales. To overcome these problems, the company aimed at organisational changes and planned to split the company into two divisions as broadband and mobility solutions business, and the handset division. The case study helps to analyse whether the spin-offs could usher-in the company's growth.

Pedagogical Objectives:

• To analyse the competitive scenario and the critical success factors of the mobile handset industry
• To analyse the business strategies of Motorola.
• To analyse whether the diversified business of Motorola hampered its focus on innovation in the handset division.
• To comprehend Motorola's decision to split its handset division from other businesses.
• To analyse whether the spin-off of the handset division would be a solution to the problems faced by Motorola.

Keywords :  Motorola, Spin-off, Business division, Motorola's split, Moto Razr, Nokia, Samsung, Market share, Net sales, Product portfolio, Transformation, Segmentation, Innovation, Mobile handset industry

Contents : 
Competitive Scenario of the Mobile Handset industry
Top 10 Emerging Markets by Mobile Subscriber Growth
Global Mobile Connections – (1995-2008)
Market segmentation of Nokia
Motorola: Its Problems and the Split
Business Division of Motorola
10 Best Rated Motorola Mobile Phones
Key Features of MotoRazr